The Coming Currency Shock

November 16, 2004
Declining Superpower Act
By PAUL CRAIG ROBERTS

China’s currency peg to the US dollar prevents correction of the US trade imbalace and imperils the US dollar’s role as reserve currency…

…The reserve currency conveys unique advantages on the favored country. As the reserve currency, the US dollar is guaranteed a high level of demand. Foreign central banks hold their reserves in dollars, and countries are billed in dollars for their oil imports, which requires other countries to buy dollars with their currencies…

(Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy during 1981-82.)

CounterPunch